Kentucky Paycheck Calculator

Kentucky has a flat state income tax rate of 4.0% in 2026, reduced from 4.5% in 2023 under HB 1 (2022) and continuing its planned reductions. Kentucky's flat rate applies uniformly to all taxable income, making the computation straightforward. The rate is scheduled for further reductions — potentially to 3.5% by 2028 — contingent on revenue triggers being met.

Kentucky has an extensive local occupational tax system. Louisville (Jefferson County) charges 2.2% on wages, Lexington-Fayette charges 2.25%, and many other Kentucky cities and counties levy local occupational taxes ranging from 0.5% to 2.5%. These are withheld by employers and significantly add to the total sub-federal tax burden.

Kentucky workers need to check their specific city/county of employment and residence for the applicable local occupational tax rates. Louisville metro workers may pay 2.2% city + 4% state = 6.2% combined sub-federal rate. Pre-tax 401(k) contributions reduce Kentucky taxable income.

Country

Gross income

$

United States settings

Take-home pay /2 wks

$2,885

$75,014 / year

$3,846

Gross /2 wks

$961

Total deductions

25.0%

Effective tax rate

22.0%

Marginal tax rate

Take-home75.0%
Take-home$75,014
Federal/Income tax$13,459
FICA / NI / CPP$7,650

Disclaimer

This calculator provides estimates for informational purposes only. Actual tax withholding may vary based on specific circumstances. This is not tax, legal, or financial advice. Consult a qualified professional for personalized guidance.

No personal data leaves your browser. All calculations happen locally. Shareable links encode your inputs in the URL — don't share links with sensitive salary details publicly.

Tax tables: 2026 IRS Publication 15-T | HMRC 2025-2026 | CRA 2026 | ATO 2025-2026 | Income Tax India FY 2025-26

Key Tax Facts

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Kentucky flat state income tax: 4.0% (reduced from 4.5% in 2023).

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Further reductions to 3.5% possible by 2028 under revenue-triggered legislation.

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Louisville/Jefferson County occupational tax: 2.2% on wages.

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Lexington-Fayette occupational tax: 2.25% on wages.

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Many Kentucky cities and counties have additional local occupational taxes (0.5%–2.5%).

Frequently Asked Questions

What is Kentucky's state income tax rate?expand_more
Kentucky has a flat 4.0% income tax rate in 2026. The rate was 5% until 2018, then 5%, then reduced to 4.5% in 2023, and further to 4.0% in 2024. Additional reductions are legislatively planned if revenue growth targets are met annually.
Does Louisville have a local income tax?expand_more
Yes. Louisville-Jefferson County Metro Government levies a 2.2% occupational tax on wages earned within Louisville. This applies to both residents and non-residents working in the city. Combined with the 4.0% state rate, Louisville workers pay 6.2% in combined state + local income taxes — higher than several surrounding states.
Does Lexington have a local occupational tax?expand_more
Yes. Lexington-Fayette Urban County Government charges a 2.25% occupational tax on wages. This is one of the higher local rates in Kentucky. Workers employed in Lexington pay this tax regardless of whether they live in Lexington or commute from surrounding counties.

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